Question

What was the main drawback of a national sales tax?

Answer 1

A national sales tax would require additional administration to ensure that businesses continued to pay taxes. If the national sales tax was high, such as 35%, then it could contribute to a rise in black market activity and crime among normally law-abiding citizens. A high tax percentage may also encourage people to devise ways to avoid the tax.

Answer 2

The national tax is often raised higher because of the existing debts. It will not only caused many families suffering from the national taxes but also it would incur large number of accountants, lawyers and HR personnel to be unemployed because of the tax system that was being implemented